The effect of organisational ethical climate and peer monitoring control systems on budgetary slack: an experimental study / Vincent K Chong and Danny Sudarso

K Chong, Vincent and Sudarso, Danny (2016) The effect of organisational ethical climate and peer monitoring control systems on budgetary slack: an experimental study / Vincent K Chong and Danny Sudarso. Asia-Pacific Management Accounting Journal (APMAJ), 11 (2). pp. 41-64. ISSN 2550-1631

Abstract

This study addresses the following research questions. Firstly, does a peer monitoring control system provide an ideal opportunity for managers to build slack into their budgets in team-based settings? Secondly, does the organisational ethical climate influence the propensity of managers to create budgetary slack? Lastly, what is the effect of peer monitoring control systems and organisational ethical climate on budgetary slack creation by managers? A laboratory experiment was conducted. Results indicate that a peer monitoring control system provides an ideal opportunity for managers to build slack into their budgets. The organisational ethical climate can influence the ethical behaviours of subordinates. Under a weak organisational ethical climate, subordinates are likely to engage in opportunistic behaviour. Furthermore, budgetary slack creation is low in the absence of a peer monitoring control system and a strong organisational ethical climate exists.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
K Chong, VincentUNSPECIFIED
Sudarso, DannyUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Planning. Business planning. Strategic planning
H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Organization
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 11
Number: 2
Page Range: pp. 41-64
Item ID: 29959
Uncontrolled Keywords: Ethical climate, Peer monitoring control systems, Budgetary slack
URI: http://ir.uitm.edu.my/id/eprint/29959

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